A new instrument on Royalties and Licence Fees under Article 8.1 (c) of the Customs Valuation Agreement (CVA) has been adopted by the Technical Committee on Customs Valuation (TCCV) at its 53rd session, held from 20 September to 20 October in a blended format. 265 delegates from 95 Members and Observers together were registered for this session.
Advisory Opinion 4.19 adds to the 19 existing instruments that deal with royalties and licence fees and shows how a single royalty paid for the right to use or incorporate a patented imported input in the production of a finished product in the country of importation and the use of a trademark on the finished product is to be treated for customs valuation purposes.
The instruments adopted by the TCCV help to ensure, the uniform application and interpretation of the provisions of the WTO CVA and are published in the WCO Customs Valuation Compendium.